Report of the Comptroller and Auditor General of India on General and Social Sector For the year ended March 2012 Government of West Bengal Report No. 4 of 2013 Table of Contents Table of Contents Paragraph Page Preface v Chapter 1: Overview of the General and Social Sectors 1 Chapter 2: Performance Audit Mahatma Gandhi National Rural Employment 2.1 5 Guarantee Scheme (Panchayat & Rural Development Department) Integrated Child Development Services 2.2 40 (Women and Child Development & Social Welfare Department) Chapter 3 : Compliance Audit Health and Family Welfare Departments Intended outcome of construction of health facilities 3.1 59 remaining unachieved Loss of revenue and undue favour to a private party 3.2 61 Loss of Government revenue 3.3 63 Utilisation of HSDI funds and flexi-funds on 3.4 64 inadmissible items Home (Police) Department Implementation of Coastal Security Scheme 3.5 66 Information and Cultural Affairs Department Infructuous expenditure on Brand Bengal Project 3.6 74 Panchayat and Rural Development and Finance Departments Persistent delayed release of central funds to Local Bodies 3.7 76 Public Health Engineering Department Avoidable expenditure on outsourcing of work 3.8 77 Avoidable expenditure on a water supply scheme at 3.9 78 Belur Math School Education Department Parking of programme funds outside government accounts 3.10 80 Infrastructure in primary schools 3.11 81 Non-adherence to NCTE norms leading to avoidable 3.12 87 financial burden Self Help Group and Self Employment Department Retention of Government subsidy by banks 3.13 89 General Cash management in Government Departments 3.14 91 Lack of response of Government to audit 3.15 92 Chapter 4: Chief Controlling Officer based Audit of Government Department Report on the Chief Controlling Officer based audit of 495 Backward Classes Welfare Department (Backward Classes Welfare Department) i Audit Report (General & Social Sector), 2011-12 Appendices Appendix No. Description Page No. Appendix 1.1 Audit jurisdiction of Pr. AG (General & Social Sector Audit), West Bengal 127 Appendix 1.2 Names of the Departments who did not submit suo-motu replies with number of para/reviews involved 129 Appendix 1.3 Significant recommendations of PAC against which Action Taken Notes were outstanding from Departments 130 Appendix 2.1 Names of selected districts, blocks and GPs covered under the Performance audit of MGNREGS 132 Appendix 2.2 Cases of fictitious engagement of workers 134 Appendix 2.3 (A) Number of HH registered, issued job cards and provided employment of selected districts 135 (B) Number of HH demanding and provided with employments in the selected districts 135 C) Number of HH provided with employments for 100 days 135 Appendix 2.4 Block wise average wage per HH and person days in selected districts and blocks 136 Appendix 2.5 (A) Works done in selected districts under MGNREGA during 2007-12 (in amount) 137 (B) Works done in selected districts under MGNREGA during 2007-08 to 2011-12 (in number) 138 Appendix 2.6 (A) Sector-wise asset created in districts under MGNREGA during 2007-12 (in numbers) 139 (B) Sector wise asset created in districts under MGNREGA during 2007-12 (in amounts) 141 Appendix 2.7 Excess expenditure on account of consumption of abour in excess of estimates /SOR 144 Appendix 2.8 Excess expenditure on account of materials 145 Appendix 2.9 Cases where details were not found in the Employment Register but were found in muster rolls 146 Appendix 2.10 Names of selected districts (DPOs) with projects (CDPOs) 148 Appendix 2.11 Funds received and expenditure incurred under SNP and administrative cost 149 Appendix 2.12 A Status of operationalisation of AWs sanctioned in various phases 150 Appendix 2.12 B Yearwise position of registered number of beneficiaries vis-a-vis coverage in SNP 150 Appendix 2.12 C Disruption of SN in test checked AWs 151 Appendix 2.13 Number of babies with low birth weight 152 Appendix 2.14 Excess expenditure for not availing rice under WBNP 152 Appendix 2.15 A Target and achievement of immunisation 153 Appendix 2.15 B Target and achievement of immunisation of children and pregnant mother 154 Appendix 2.16 Vacancies of Supervisors in test checked projects as of March 2012 155 Appendix 2.17 Inadequate deployment of Supervisors and inadequate visits 156 ii List of Appendices Appendix No. Description Page No. Appendix 3.1 Details of the newly created infrastructures lying non-functional 157 Appendix 3.2 List of completed ANM quarters remaining unused in test checked districts 159 Appendix 3.3 Details of construction works remaining suspended 160 Appendix 3.4 Inadmissible expenditures from flexi-funds 161 Appendix 3.5 Status of construction of Coastal Police Stations as of March 2012 162 Appendix 3.6 Status report on performance of interceptor boats till March 2012 163 Appendix 3.7 Year-wise position of receipt/ utilisation and closing balances of Government funds for External Evaluation and Diagnostic Achievement Tests 165 Appendix 3.8 List of ACRs involved, completed, not completed or not started 166 Appendix 3.9 Drawal, release and retention of Government subsidies by Banks under BSKP as of March 2012 167 Appendix 3.10 Details of Mismanagement of cash 168 Appendix 3.11 Year-wise position of Inspection Reports and Paragraphs pending settlement 170 Appendix 4.1 Organisational Chart of BCW Department 171 Appendix 4.2 List of offices test checked for CCO based audit of Backward Classes welfare Department 172 Appendix 4.3 Scheme wise physical and financial targets vis-a-vis achievements of the West Bengal Schedule Castes and Schedule Tribes Development & Finance Corporation in 14 test checked districts during 2007-2012 173 Appendix 4.4 Scheme wise physical and financial targets vis–a-vis achievements of the West Bengal Backward Classes Welfare Development & Finance Corporation during 2007-2012 174 Appendix 4.5 The budget provision, expenditure, target and achievement of scholarship schemes 175 Appendix 4.6 District-wise excess claims in Ashram Hostels 177 Appendix 4.7 Status of Community Development schemes 178 Appendix 4.8 Performance of Training-cum-Production Centres 179 Appendix 4.9 Age-wise analysis of outstanding Utilisation Certificates as of March 2012 against grants paid during 2007-12 180 Abbreviations used in the Report 181 iii Preface 1. This Report on the audit of expenditure incurred by the Government of West Bengal has been prepared for submission to the Governor under Article 151 of the Constitution. 2. This Report covers significant matters arising out of the Compliance and Performance Audit of various Departments and Autonomous Bodies under the General and Social Sector. 3. The Report starts with an introductory Chapter outlining the profile of audited entities, audit mandate, planning and extent of audit and profile of the General and Social Sector Departments under the audit jurisdiction of Principal Accountant General (General & Social Sector Audit), West Bengal. Chapter 2 of the Report covers Performance Audit, while Chapter 3 discusses significant findings emerging from Compliance Audit. Chapter 4 includes the findings arising out of the Chief Controlling Officer based audit of Backward Classes Welfare Department. 4. The cases mentioned in this Report are among those which came to notice in the course of test audit of accounts during the year 2011-12 as well as those which had come to notice in earlier years but could not be dealt with in previous Reports; matters relating to the period subsequent to 2011-12 have also been included wherever necessary. 5. Audit observations on the Annual Accounts of the Government, Economic Sector Departments, Revenue Receipt of the State Government and statutory Corporations/Government Companies would form part of separate volumes of Reports, namely Report on the State Finances, Report on Economic Sector, Revenue Receipts Report and Commercial Audit Report respectively. Besides above, one report on District centric Audit of Malda is being published separately as a stand-alone volume. v Chapter 1 Overview of the General and Social Sectors Chapter 1 : Overview of the General and Social Sectors Chapter 1 : Overview of the General and Social Sectors 1.1 About this Report With an aim to integrate audit effort and present a sector based perspective, restructuring of the Comptroller and Auditor General (C&AG)'s audit arrangement in respect of Government of West Bengal took place with effect from April 2012. Audit of Government offices, special purpose agencies, local bodies, parallel bodies, Public Sector Undertakings etc. are integrated into suitable sectoral audits, such as 'Social', 'Economic', 'General' and 'Revenue'. Accordingly, this year onwards, Audit Reports covering sector-wise State Government departments are being brought out separately by the C&AG for submission to the Governor as per provisions of the Constitution of India. Authority for audit by the C&AG is derived from articles 149 and 151 of the Constitution of India and the Comptroller and Auditor General's (Duties, Powers and Conditions of Service) Act, 1971 (DPC Act). C&AG conducts audit of expenditure of State Government Departments under Section 131 of the C&AG's DPC Act. CAG is the sole auditor in respect of the Autonomous Bodies, which are audited under sections 19 (2), 19 (3)2 and 20 (1)3 of the DPC Act. In addition, C&AG also conducts audit under Sections 144 of DPC Act, of other autonomous bodies which are substantially financed by the Government. Principles and methodologies for various audits are prescribed in the Regulation of Audit & Accounts, 2007, Auditing Standards and Performance Audit guidelines issued by the Indian Audit & Accounts Department. This Report covers matters arising out of audit of State Government Departments and Autonomous Bodies under the General and Social Sectors.